J2 Global (JCOM) Q1 Earnings, Revenues Fall Shy Of Estimates
Zacks Investment Research | May 09, 2017 08:59AM ET
Los Angeles, CA-based j2 Global, Inc.’s (NASDAQ:JCOM) first-quarter 2017 earnings (on an adjusted basis) of $1.14 per share (including stock-based compensation expenses) missed the Zacks Consensus Estimate by 7 cents. However, earnings increased 11.76% on a year-over-year basis, on the back of higher revenues.
Quarterly revenues came in at $254.7 million, up 27.02% year over year. The top line however fell short of the Zacks Consensus Estimate of $258.5 million.
Segment-wise, total Cloud Service revenues grew 2.5% year over year to $140.4 million in the reported quarter. Digital Media revenues came in at $113.1 million, up 81.5%. IP Licensing revenues were flat at $1.2 million in the first quarter of 2017.
j2 Global’s quarterly operating expenses were $165.9 million in the quarter under review, up 47% from the year-ago quarter. Quarterly adjusted EBITDA (earnings before interest and other expenses) rise 14.8% year over year to $99.5 million.
j2 Global exited the first quarter of 2017 with approximately $187.4 million in cash and cash equivalents, compared with $123.9 million at the beginning of the quarter. Long-term debt at the end of the first quarter of 2017 was $604.3 million, compared with $601.7 million at the start of the quarter. Free cash flow at the end of the quarter increased 1.7% year over year to $61.5 million.
Outlook
The company expects earnings per share (on an adjusted basis) in the band of $5.60 to $6.00 for full-year 2017, unchanged from its previous guidance. The prediction for revenues has also been reiterated at the range of $1.13 billion to $1.17 billion. The Zacks Consensus Estimate currently calls for earnings of $5.59 on revenues of $1.15 billion for 2017.
Dividend Hiked
In a shareholder friendly move, j2 Global’s board of directors approved a 2.7% increase in its quarterly dividend. The company will now pay a dividend of 37.5 cents per share, which marks the 23rd successive quarterly dividend hike. The payment will be made on Jun 2, to shareholders on record as of May 19.
j2 Global, Inc. Price, Consensus and EPS Surprise
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